European indices are still feeling the effects of last weekend’s European Elections where right-wing parties fared much better than expected. In the wake of a crushing defeat, French President Emmanuel Macron called for a parliamentary election at the end of the month, the Belgium PM resigned, while German Chancellor Olaf Scholz’s center-left Social Democrats polled just 14%, their worst-ever result in a nationwide vote. European indices fell during the day Monday, before recovering towards the end of the session, and renewed selling today has seen some indices hit multi-week lows.
The FTSE 100 is also under pressure today as risk sentiment sours, with the UK index touching lows last seen at the start of May. Today’s UK labor data has not helped the FTSE’s cause either.
UK Sheds Jobs but Pay Grows Complicating BoE Rate Outlook
FTSE 100 Daily Chart
FTSE 100
Bearish
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of clients are net short.
| Change in | Longs | Shorts | OI |
| Daily | 34% | -12% | 3% |
| Weekly | 36% | -10% | 5% |
Gold is pulling back some of Friday’s post-NFP losses after nearing a noted level of support around $2,280/oz. level. The precious metal remains below the 20-day- and 50-day simple moving averages, at $2,355/oz. and $2,343/oz. respectively and will need to break and open above these two indicators if it is to move higher.
Gold Daily Price Chart
